The funds will be allocated for a number of new projects including the introduction of new vehicles and powertrains, the creation of new facilities at GM's local engineering and design center, the expansion of GM's existing manufacturing joint ventures, and the launch of a new financing joint venture. The new investment will be funded by profits from GM's China joint ventures.
Phil Murtaugh, chairman and CEO of the General Motors China Group, says “GM remains confident in the long-term prospect of the China market. With the world's fastest-growing vehicle market, success in China is crucial to GM's global success. GM has become a leader in China by taking advantage of opportunities with our strategic partner Shanghai Automotive Industry Corporation Group (SAIC) and introducing new and upgraded products to meet local demand.”
GM and its joint ventures in China plan to introduce nearly 20 completely new and upgraded products over the next three years. Most of the products will be locally manufactured.
Among the new products will be several Cadillac models, which will be manufactured at Shanghai General Motors Company Limited (Shanghai GM) and imported from North America.
GM's joint ventures also plan to introduce a range of new engines and transmissions.
The names and models of the new vehicles, engines and transmissions will be revealed closer to the start of production and sales.
In the first four months of this year, GM and its joint ventures sold approximately 178,000 vehicles in mainland China, representing year-on-year growth of 56%.